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Marketing and Distribution Management - Essay Example

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Marketing and Distribution Management

Statistics for the company as per the year 2011 showed that the company has 221,726 employees and its assets total USD 135.131 billion. The company’s main areas of products are mobile phones, televisions, semiconductors along with LED and LCD panels. 1 b. Marketing and Selling Concept Marketing is a collective process through which Individuals and groups attain what they require and want by creating, offering and exchanging products and services which considered as valuable with others. The major concepts hold in this perspective is: Selling Concept This Inside-out perspective assumes that people must be sold whatever good or service the firm wants to offer. First it is decided what should be produced and then is selected a strategy to persuade people to buy the decided product. This approach implies that great deals of promotional or selling activities are needed to make the product move through the market to the consumers. The Selling Concept could be summarized as 1) Start with deciding what the firm wants to make; 2) Persuade the customers to buy the given product; and 3) It is aimed at ‘getting rid of what consumers have’. Marketing concept According to this concept, the achievement of organizational goals depends greatly on knowledge of needs and wants of the target markets. Also, these needs and wants have to be satisfied more efficiently than done by the competitors. The Marketing Concept could be summarized as 1) Start with the needs of the customers; 2) Develop the Four P’s of marketing in light of the customer needs; 3) It is about “Having what consumers can get rid of” In practice, Samsung followed the marketing concept after analyzing the needs of consumers who require smartphones at affordable costs with all advanced features. The changes in life styles of consumers are closely monitored and suitable applications are designed to match these needs in every new model. That is why the sales volume of smart phones reached about 40% of sales volume of the company mobile phones category in 2012. 1 b. Market Segmentation and Targeting The segmentation done at Samsung is mainly on the basis of demographics and psychographics. Youth and middle age cosmopolitan consumers of both genders are targeted who belong to middle and high income groups. Novelty seekers, fun loving, extroverts are major personality traits of company consumers segments. The target strategy applied by Samsung is the 'shotgun' strategy according to which a wide range of market segments are covered through creation of many models. In contrast, Apple, which itself is a competitor, offers only a small number of models which are high-profile. In the pursuit of market share, both the companies have managed to mark their geographical presence as well expand it. However, the two companies can possibly come in to conflict inevitably as both get in to the run of trying to generate additional gains. 1 c. Brand Positioning The main positioning strategy of Samsung is to stop consumers just thinking about the product instead start feeling it as part of their personality. Normally when brand is transitioned from the left side of the brain to the right side, its position becomes powerful. i) Samsung has a position of best alternative to Apple iPhone category at economical price. Recent court cases of both companies supported this position as Samsung trying to achieve the leading edge in smartphones market. ...Show more
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Class Date 1. Introduction Samsung Electronics Co., Ltd, having its base in Suwon, South Korea, is a multinational in the electronics industry. This company is a subsidiary the Samsung Group of Conglomerates and according to revenue is the largest technology company in the world since 2009…
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